When BPCL is likely to be divested and will the buyer make an open offer to shareholders of IGL and Petronet?

The BPCL divestment could take an interesting turn after SEBI hinted that they may not offer any special exemption to the eventual acquirer of the GOI’s 52.98% stake for the stake that BPCL held in IGL and Petronet LNG. One of the debatable points in the entire deal arises because BPCL holds 12.5% in Petronet and 22.5% in IGL. BPCL has been classified as a promoter of Petronet and IGL and hence BPCL also holds board positions.

As per the current legal position, the eventual acquirer of the 52.98% stake in BPCL from the government of India will have to make open offers to shareholders of Petronet and IGL to buy 26% shares. SEBI may not accede to the request of open offer exemption in the larger interests of the minority shareholders. BPCL is unwilling to reduce its stake in Petronet and IGL and other holder like GAIL could make a counter offer as they would dilute their stake.